FMC Faces Challenges in Latin America

Agricultural-sciences company FMC has revised its guidance for the second time in less than four months due to difficulties in Latin America impacting sales volumes. The Philadelphia-based company cited destocking in Brazil and a drought in Argentina as the primary drivers for the downward revision.

FMC now expects revenue of $4.48 billion to $4.72 billion in 2023, down from its previous guidance of $5.2 billion to $5.4 billion. Adjusted earnings before interest, taxes, depreciation, and amortization are projected to be $970 million to $1.03 billion for the year, compared to the prior outlook of $1.3 billion to $1.4 billion.

For the third quarter, revenue is forecasted to reach $982 million, with adjusted earnings of 44 cents per share. FMC had previously anticipated adjusted earnings of 90 cents to $1.32 per share on revenue of $1.19 billion to $1.27 billion.

FMC is now expecting fourth-quarter revenue of $1.14 billion to $1.38 billion, a downward revision from the previous projection of $1.66 billion to $1.78 billion. Adjusted EBITDA for the quarter is expected to be $246 million to $306 million, down from a prior forecast of $511 million to $561 million.

The company, known for its herbicides, insecticides, and fungicides, initially adjusted its outlook in July due to inventory pullbacks across North America, Latin America, Europe, the Middle East, and Africa.

CEO Mark Douglas noted that channel destocking has continued in all regions, with Brazil experiencing a particularly significant destocking impact. As a result, FMC has initiated a restructuring process for its operations in Brazil.